The opening case provides some interesting statistics about the housing market in Canada, the future of interest rates, the role of banks in providing mortgages, and some cautionary remarks about housing bubbles. It is difficult to know where the housing market is headed, so potential buyers must be careful.

1. How has the change in government policy with regard to amortization periods and down payments influenced the housing market?

2. Visit the TD Canada Trust website and access the Mortgage Calculator tool at www.tdcanadatrust.com. How much is the posted rate for a five-year mortgage? How much will it cost you (monthly payment) to get a mortgage of $250,000 with a 25-year amortization? What is the total cost of your interest payments over the lifetime of the loan?

3. Visit the Canadian Real Estate Association (CREA) website (http://www.crea.ca/content/national-average-price-map) and find out the average price of homes in Canada in your province and in your city. Also search for some of the other major markets listed in the case. Have prices increased or decreased since 2015? Figure out the percentage increase and decrease in each market.